Return to question 15 0.48 points Saginaw Incorporated completed its first year of operations with a pretax loss of $627,500. The tax return showed a net operating loss of $756,500, which the company will carry forward. The $129,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Required: a. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance b. Prepare the journal entry to record the deferred tax consequences of the depreciation book-tax difference c. Prepare the journal entry to record the deferred tax consequences of the valuation allowance Answer complete but not entirely correct. No Transaction General Journal Credit Debit 257040 1 a Deferred tax asset Deferred tax benefit 257,0403 2 b 43,8603 Deferred tax expense Deferred tax liability 43,860 3 C 213 350 3 Deferred tax benefit Valuation allowance 213,3503